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Question : Adiraj and Karan were partners in a firm sharing profits and losses in the ratio 3: 2. On 31st March 2018 the firm was dissolved. After the transfer of assets (other than cash in hand and at the bank) and third-party liabilities to the Realization Account, the following information was provided:
Question:
Profit and Loss Account showed a debit balance of Rs. 50,000. The entry will be

Option 1: Adhraj 's capital account debited Rs 30,000, Karan's capital account debited Rs 20,000 credited profit and loss account Rs 50,000

Option 2: Debited profit and loss account with Rs 50,000 credited Adhiraj's capital account by Rs 30,000 a and karan's capital account by Rs 20,000

Option 3: Debited realization account and credited partner's capital account with Rs 50,000

Option 4: None of the above


Team Careers360 20th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Adhraj 's capital account debited Rs 30,000, Karan's capital account debited Rs 20,000 credited profit and loss account Rs 50,000


Solution : Answer = Adhraj 's capital account debited 30,000, Karan's capital account debited RS 20,000 credited to the profit and loss account Rs 50,000

Undistributed Losses (Profit and loss Dr) will Be distributed among the old Partners in their profit-sharing Ratio.

Partners capital AIC or.
To Profit and lose A/C
[In old Profit sharing Ratio]
Hence, the correct option is 1.

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